An independent review led by Professor John Underhill, Director of Energy Transition at the University of Aberdeen’s Interdisciplinary Institute, sets out recommendations designed to secure energy supply without undermining climate commitments.
A bespoke permit system
The review proposes the introduction of bespoke oil and gas permits tied to strategic infrastructure such as existing pipelines and platforms. This would allow near-field and infrastructure-led exploration to unlock modest but impactful reserves. Unlike the historic offshore licensing system, the new model would align with Labour’s manifesto commitment of “no new licenses” while still encouraging investment and stability in the North Sea basin.
Professor Underhill warned that without action, the UK risks compounding problems already created by refinery closures at Grangemouth and Lindsey, stranded gas reserves in the Southern North Sea, and premature decommissioning of vital facilities such as the Gryphon FPSO vessel.
“We all want to see a cleaner, greener future but we must also be honest about the energy reality today,” said Professor Underhill. “The UK still relies heavily on oil and gas and without a clear and pragmatic plan, we risk replacing home-grown supply with higher-emission imports, something that is worse for the climate.”Professor John Underhill
Import dependence growing
Oil and gas currently meet around three-quarters of the UK’s energy needs, with gas alone supplying more than 85% of domestic heating and cooking and often providing over half of electricity during periods of low renewable output.
Growing reliance on imports from Norway, the USA, Qatar and Algeria brings added geopolitical and environmental concerns, particularly as some imported gas is derived from carbon-intensive fracked shale – a process banned in the UK.
Professor Underhill noted that other countries such as New Zealand, the Netherlands and Norway have recently pivoted back towards supporting domestic production in light of energy security concerns.
Key recommendations
The review sets out several measures for government consideration:
- Near-field and infrastructure-led permits – enabling incremental but strategic discoveries.
- Strengthened regulation and stewardship – including eliminating routine flaring, incentivising platform electrification and supporting carbon storage.
- Safeguarding critical infrastructure – ensuring pipelines and platforms remain viable to avoid premature closures.
- Industry confidence – providing clear signals that strategic projects can proceed to protect jobs, tax revenues, and supply chain capability.
“Allowing the issue of bespoke permits … is a practical way to arrest an otherwise ever-increasing dependency on imports, provide support for the sector at a time of stress, enhance energy security … and help avoid an unmanaged, disorderly and unjust outcome for communities,” added Professor Underhill.
Strong industry backing
Industry leaders have endorsed the findings, stressing that energy security, economic growth and climate goals must be advanced in tandem.
Russell Borthwick, Chief Executive of Aberdeen & Grampian Chamber of Commerce, said: “Energy security, economic growth and our transition to net zero are not competing priorities – they must be delivered together. Professor Underhill’s proposals offer a pragmatic, regulated pathway which keeps the lights on, drives investment and GDP, protects skilled jobs, and avoids the perverse outcome of further increasing imports with a multiple times higher carbon footprint.”
David Whitehouse, Chief Executive of Offshore Energies UK (OEUK), added: “OEUK welcomes this independent research and its conclusions. The proposals Professor Underhill puts forward come at an important time, when critical decisions made by government in the coming months will shape the future of the North Sea directly impacting on the livelihoods of those working in the sector.”
Implications
For the fuel distribution community, the review highlights the interconnected risks of declining domestic refining and upstream production. With UK demand still heavily reliant on hydrocarbons, an unmanaged decline could lead to more imported fuels with higher costs, longer and more unpredictable supply chains, and increased carbon footprints.
The review’s call for safeguarding infrastructure and supporting domestic production could provide greater stability for supply chains while ensuring the skills and assets that underpin today’s industry remain available to deliver the transition.
Image provided by the University of Aberdeen